For just about 100 years the single, biggest, most important rule when it comes to investing in real estate is to find a good location. The quality of build, the price or how easy the access is won’t mean much if the overall location of your commercial, residential or even industrial investment isn’t top notch.
New real-estate investors often overlook the importance of a good location, thinking it’s just a cliché, something that applies in movies and 1920s period plays. Things, however, couldn’t be further from the truth and in a future where gas prices rise, policing and supplying a neighborhood with quality services will be harder and harder. This is why a good location has never been more important and this is why some real estate agents advise most clients to buy houses that are smaller, of a weaker build quality that can be mended at a later date and resold for a higher profit. At the same time, superb houses that have no faults will be harder to sell if they are located in an undesirable location or a bad portion of a city.
The most desirable attribute of a good location is a safe neighborhood. Safety is rarely a negotiable term and a potential client won’t be willing to give up on public safety for some money off on the overall price, particularly if you’re selling a family home.
Great schools are also immensely important, particularly if you’re selling residential property. This rule doesn’t necessarily apply to families that have kids, or that even intend to have kids anytime in the future. It is an important issue because it can affect the resale value of the house.
Access is also an important characteristic of a residential property. Access to things like shops, supermarkets, pharmacies or doctors can make a huge difference in the value of a certain property. Avoiding a traffic jam because you live close enough to work that you can take a bike, being able to pick up groceries from just a block away are things that can make or break the value of a residential property.
An amazing property has to have a great view. You can’t sell a luxury home, regardless of how convenient it is situated or how good the school district is if you don’t provide an equally impressive view. It can be a lake, mountains, even the dessert, as long as it is impressive.
If you’re going to have to drive to work you wouldn’t want to drive endlessly through a suburban maze of streets so easy access to highways or public transport is another must for a premium location.